TESLA Stock - Bullish Re-Test?

Summary

In this Tesla stock update, the speaker provides an analysis of Tesla's recent market movements, focusing on key technical indicators, support levels, and potential future trends. Despite a somewhat weaker performance than expected, the speaker remains cautiously optimistic, highlighting the importance of holding key support levels around $330. With bullish momentum indicators like the MACD in play, the speaker anticipates a possible consolidation phase before Tesla can rally to higher levels, including a target range of $350 to $400 in the medium-term. However, caution is advised, as nothing is guaranteed in the unpredictable stock market.

Takeaways

• 😀 Tesla stock was up by 0.5% today, showing a slight recovery after a red day earlier in the session.
• 😀 The stock retested previous resistance now as support, particularly in the low 330s range, which is crucial for maintaining bullish momentum.
• 😀 A key breakout level was reached, and Tesla bounced off the support at the breakout point, confirming some bullish behavior.
• 😀 There’s no guarantee that Tesla will move higher immediately; the market is volatile and no stock is ever 100% certain to go up.
• 😀 If Tesla continues to hold the low 330s as support, the bulls are in control, but failure to do so could signal a bearish reversal.
• 😀 Expect potential consolidation in the low 330s to mid-350s range for the short term, possibly extending into next week.
• 😀 The stock is slightly extended from the exponential moving averages, meaning consolidation might be needed to allow the EMAs to catch up.
• 😀 A move similar to previous breakout patterns, like a bull flag setup, could occur, possibly leading to a higher move after a consolidation phase.
• 😀 While the breakout so far looks textbook, a bearish engulfing candle below 335 would have been concerning, but it was avoided.
• 😀 Short-term targets for Tesla are around the low 350s to mid-360s, while longer-term targets could be in the high 300s or low 400s over the next few weeks.
• 😀 The MACD is showing signs of a bullish crossover, and closing above key resistance levels (like 345) could confirm further bullish momentum for Tesla.

Q & A

What was the main focus of the Tesla stock update in the video?

The video focuses on analyzing Tesla's stock performance, recent market activity, potential consolidation, and future price movements based on technical indicators like EMAs, MACD, and options flow.

What does the speaker think about Tesla's recent price movement?

The speaker views the recent price movement as relatively standard, with Tesla seeing a modest 0.5% increase on the day. Although the stock showed some weakness compared to expectations, it is holding support at key levels, which the speaker sees as a positive sign.

What are the two main technical levels discussed for Tesla's stock support?

The speaker discusses two key support levels: the low 330s range and the breakout retest level near the same area, which was previously resistance but has now become support.

Does the speaker think Tesla will immediately rise to $400?

No, the speaker clarifies that there is no guarantee Tesla will immediately reach $400. While the stock is in bullish territory, there is always uncertainty in the market, and price movement is not guaranteed.

What are the key indicators the speaker is monitoring for further bullish signals?

The speaker is watching several indicators: the MACD for a potential bullish crossover, the Supertrend for a green signal above $345, and the EMAs to confirm the bullish trend. These are seen as critical for determining if Tesla can continue its upward movement.

Why does the speaker mention consolidation in the short term for Tesla's stock?

The speaker expects potential consolidation due to Tesla being a bit extended from the exponential moving averages (EMAs). This could result in sideways movement to allow the EMAs to catch up before a continued upward movement.

What is the speaker's medium-term price target for Tesla?

The speaker's medium-term price target for Tesla is in the high 300s, potentially reaching near $400 over the next few weeks or months, although the exact timing is uncertain.

What could be a bearish signal that would concern the speaker?

A bearish signal would be if Tesla's stock closes below the 330 level, which could indicate a false breakout or a failure to maintain support. This would likely lead to a sharp downward move.

What does the speaker compare the current consolidation to?

The speaker compares the current consolidation to a previous consolidation phase that occurred before a breakout. In that case, Tesla consolidated for about a week before making a bullish move higher, suggesting a similar pattern could occur again.

How does options flow factor into the speaker's outlook on Tesla's stock?

The speaker mentions that recent options flow has been largely bullish, with significant call options at strikes like 340 and 345. This suggests that market participants expect the stock to rise, which supports the speaker's overall bullish outlook.